Bank of England figures show increase in farm debt.

Navigation: Main page

Author: Harris, Robert

FARM DEBT increased again during the second quarter of the year, according to the latest Bank of England figures.

Lending rose to £8.75bn, 2% up on the previous three months and 4.5% on the same period in 2004. John Barker, senior agriculture manager at HSBC Bank, said the quarterly rise was to be expected as farmers invested in the 2005 harvest, but the year-on-year trend was due to pressure on profits and cash-flows across all farming sectors. Tim Porter of Lloyds TSB said: "It is of some concern that we see this sharp increase in farm borrowings this year, particularly as farmers are already expecting to meet cash flow problems in the coming winter because of the expected delay in receiving the single payment."

Bank deposits also rose slightly on the year to £3.57bn. "These figures confirm that the gap between those that are doing well and those that are struggling appears to be widening," said Mr Barker.

Values at 3.20pm, Aug 10 (numbers in
brackets are last week's values)

£1       €1.4493    (€1.4425)
               $1.7972         ($1.7783)

€1        £0.6897   (£0.6925)
               $1.2401         ($1.2328)

$1             £0.5564   (£0.5624)
               €0.8064    (€0.8112)

~~~~~~~~

Edited by Robert Harris, 020 8652 4934